How Baby Food Market Is Positioned in
the Philippines?
The
Philippines, a country located in the Southeast Asia; situated in the western
Pacific Ocean is further divided into 3 main geographical divisions from north
to south with Manila as the capital city. Filipino and English are the official
language of Philippines and, its currency is Philippine peso (PHP). The Philippines Baby Food Market was
observed in a growing stage with slow growth pattern during the review period
2013-2018. The increasing awareness among parents for healthier products for
their children has encouraged the demand for organic baby food in the country.
In the era of increasing digitization and globalization, a shift in sale of
baby food items from offline stores to online channels is expected in the near
future as type of online channels reduces the time and effort spent in
purchasing. The country reported ~ million internet users in 2018. Majority of
the products are imported in the Philippines baby food market by international
players. International players and domestic players, both are using non-store
and store based retailers to connect with the target customers. An average
margin prevailing in the industry from a local company to distributer ranges
between ~%-~% within Philippines baby food market.
During
the review period 2016-2018, decline in growth rate was observed in Philippines
baby food market due to high domestic inflations and weak global trades.
Despite the decline, the baby food market is expected to recover in 2019. Major
growth drivers include rising food / household expenditure, increasing
awareness among the parents to provide their babies with healthier food
options, rise in the internet retailing and other factors. Combining all the
above mentioned factors, the Philippines baby food market grew at a positive
five year CAGR during 2013-2018.
Philippines Baby food Market
Segmentation
By
Food Category (Milk Formula, Dried Baby Food, Prepared Baby Food, and Other
Baby Food): Milk formula captured the majority of the market share in
Philippines in 2018 owing to its substitution for breastfeeding in the country.
The remaining market share was captured by the dried baby food, prepared baby
food and other baby food products during 2018. Other baby food segment includes
biscuits, rusks, and snacks.
Among milk formula type,
growing-up milk formula dominated the Philippines baby food market followed by
follow-on milk powdered formula, standard milk powdered formula and special
milk formula.
By Age Group (0-6 months, 6-12 months
and 12+ months): Age group of 12+ months captured the majority
of the market share in Philippines in 2018 owing to higher consumption of
growing-up formula products. The remaining market share was collectively
captured by 6-12 months and 0-6 months’ age group during the year 2018.
By Type of Distribution Channel
(Health and Beauty Specialist Retailers, Supermarkets, Independent Small
Grocers, Hypermarkets, Internet Retailing and Convenience Stores): Majority
of the baby food sales are made through health and beauty specialist retailers
as well as supermarkets majorly due to the high preference for modern stories
with popular brands and multiple variants. The remaining distribution channels
include independent small grocers, hypermarkets, internet retailing and
convenience stores which collectively captured the remaining market share in
the year 2018.
By Nature (Inorganic and Organic)
The
Philippines baby food market during the year 2018 was majorly dominated by the
inorganic baby food segment as it is widely available at a low cost when
compared to organic baby foods in the Philippines. However, the growing
awareness among the parents to provide healthy food to their babies has given a
boost to organic baby food sales in the country.
Decision Making Criteria for Consumers
to Purchase Baby Food in the Philippines
Baby
food market is one of the highly sensitive markets where parents take good /
high care on deciding on a particular product for their babies. Hence, decision
making criteria’s plays important role in selection of products. Most important
decision making criteria are the advice from Health Experts and word of mouth
Comparative Landscape in Philippines
Baby Food Market
Competition
within the Philippines baby food market was observed as highly concentrated
along with the presence of three major manufacturers of baby food competing on
parameters such as product variant, channels of distribution and price. The
leading players in the market are two international companies of which one
directly imports finished baby food products in Philippines and the other
locally manufactures baby food within the Philippines. Domestic companies
selling baby food products have negligible market share. In the year 2018,
majority of the market share was held by Nestle and Reckitt Benckiser which
collectively catered to ~% of the total market in terms of retail sales. Nestle
S.A held a market share of ~% whereas the market shares of Reckitt Benckiser captured
a market share of ~% in the year 2018. The remaining ~% of the market was
captured by companies including Abbott Laboratories, Alaska Milk Corporation
and HiPP GmbH & Co and others.
Key Segments Covered:-
By Food Category:-
Milk
Formula
Growing-Up
Milk Formula (Above 12 Months)
Follow
on Milk Powdered Formula (6-12 Months)
Standard
Milk Powdered Formula (0-6 Months)
Special
Milk Formula
Dried
Baby Food
Prepared
Baby Food
Other
Baby Food (Cereal based, snacks and rest)
By Nature:-
Inorganic
Baby Food
Organic
Baby Food
By Age Group:-
0-6
months
6-12
months
12+
months
By Distribution Channel:-
Health
and Beauty Specialist Retailers
Supermarkets
Independent
Small Grocers
Hypermarkets
Internet
Retailing
Convenience
Stores
Time Period Captured in the Report:-
Historical Period –
2013-2018
Forecast Period –
2019-2023
Companies Covered:-
Nestlé
Philippines Inc
Reckitt
Benckiser Group Plc (RB)
Abbott
Laboratories
Other
Players (DMK Deutsches Milchkontor GmbH, Holle Baby Food GmbH, United
Pharmaceuticals SA and rest)
Brands Covered in the Report:-
Lactum
(Reckitt Benckiser Group)
Nido
(Nestlé SA)
Enfamil
(Reckitt Benckiser Group)
Promil
(Nestlé SA)
Nan
(Nestlé SA)
Nestogen
(Nestlé SA)
Alacta
(Reckitt Benckiser Group)
Enfagrow
(Reckitt Benckiser Group)
S-26
(Nestlé SA)
Bonamil
(Nestlé SA)
Others
Keywords:-
Prepared
Baby Food Market Philippines
Philippines
Baby Food Market
Baby
Food Market in Philippines
Baby
Food Industry Philippines
Philippines
Baby Food Sales Market
Dry
Baby Food Market Philippines
Philippines
Milk Formula Sales Market
Organic
Baby Food Sales Philippines
Philippines
Baby food Ingredients
Infant
Growth Chart Philippines
Philippines
Baby Food Genesis
Cereal
Baby Food Revenue Philippines
Cereal
Baby Food Market Philippines
Philippines
Baby Food Revenue Streams
Hero
Group GmbH Baby Food Philippines
Success
Factors Philippines Baby Food
Philippines
Baby Food Market Analysis
For more information, refer to below
link:-
Related Reports:-
Contact Us:-
Ken
Research
Ankur
Gupta, Head Marketing & Communications
+91-9015378249
